accounting

Question 1

What is appreciation?

Answer 1

• general increase in value of property that occurs over time

Question 2

an amount of money spent

Answer 2

expenditure

Question 3

What are some examples of liquid assets?

Answer 3

• cash in checking account
• cash in savings account
• stocks owned

Question 4

type of expense that changes each month

Answer 4

variable

Question 5

decrease in value of property as it becomes old

Answer 5

depreciation

Question 6

What are some accountants responsibilities?

Answer 6

• prepare and interpret financial reports
• follow budgets
• make business decisions
• maintain and review the business records of an individual or organization
• prepare budgets for individuals and businesses

Question 7

money you owe for something

Answer 7

liability

Question 8

What is a liability?

Answer 8

• money you owe for something
• buy now, pay later
• loans/notes or accounts payable

Question 9

What is depreciation?

Answer 9

• the decrease in value of property
• decreases as the item becomes old and gradually wears out

Question 10

Describe a bookkeeper

Answer 10

• entry level job
• perform only one or two tasks
• average starting salary $33000 to $36000

Question 11

Preparing forms and reports for taxes or other financial purposes is referred to as _______

Answer 11

bookkeeping

Question 12

What are some examples of liabilities?

Answer 12

• car loan
• mortgage
• supplies purchased on credit to run a company

Question 13

type of expense that occurs once in awhile

Answer 13

periodic

Question 14

Describe a Certified Public Accountant

Answer 14

• aka CPA
• have to take a national test to become CPA
• average starting salary $41000 to $43000

Question 15

What are some examples of items that appreciate?

Answer 15

• house
• land
• antiques

Question 16

money you have available to spend as a result of working or from other income

Answer 16

cash inflow

Question 17

What are the 3 types of business expenses?

Answer 17

• fixed expense
• variable expense
• periodic expense

Question 18

Why is accounting a good career?

Answer 18

• considered hottest career
• has job stability (means you can get an accounting job anywhere - everyone needs accountants)
• has high salaries

Question 19

What are some examples of variable expenses?

Answer 19

• electric bill
• gas bill
• phone bill
• food
• clothing
• waitress employees
• cashier pay

Question 20

amounts of money spent

Answer 20

cash outflow

Question 21

costs of operating a business

Answer 21

expense

Question 22

Where are some places you could work as an accountant?

Answer 22

• for your favorite musician
• target
• doctor’s office
• red cross
• toys r us
• country club
• restaurant
• cerner
• apple
• for your own accounting business

Question 23

What are some examples of items that depreciate?

Answer 23

• cars
• electronics
• computers
• ball machine

Question 24

What are some examples of periodic expenses?

Answer 24

• car repairs
• Christmas bonus
• spring court maintenance
• birthday presents
• car registration
• school taxes
• building repairs

Question 25

What is financial accounting?

Answer 25

* reporting information to external users (people not involved in day to day business operations) like investors * used for external use (outside use) * ex. an annual report is prepared for current or potential investors

Question 26

What are some examples of cash outflow?

Answer 26

* food * clothing * transportation * living expenses * haircuts * tennis lessons * Christmas decorations

Question 27

What is a liquid asset?

Answer 27

* an asset that is easily converted to cash

Question 28

revenue

Answer 28

all income a business receives over a period of time

Question 29

Describe accounting?

Answer 29

* is used in all companies, in all industries and for nonprofit and for profit companies * helps maximize the company's value

Question 30

expense

Answer 30

costs of operating a business

Question 31

What are some examples of assets?

Answer 31

* house * barbie collection * car * jewelry * motorcycles

Question 32

What is cash outflow?

Answer 32

* amount of money spent

Question 33

What two things must a business accomplish to survive?

Answer 33

* operate at a profit (make more money then it spends) * attract individuals skilled enough to run the business

Question 34

type of expense that occurs on a regular basis

Answer 34

fixed

Question 35

general increase in value of property

Answer 35

appreciation

Question 36

something you own of value

Answer 36

asset

Question 37

Hearing Aid Associates spent $50 on ink, $25 on food, and $75 on hearing aids. Susan bought aids for $1100, Ned bought aids for $900 and Lisa bought aids for $1500. What is the company's cash inflow? What is the company's cash outflow? What is the company's net income?

Answer 37

* Cash inflow - $3500 * Cash outflow - $150 * Net Income - $3350 (the amount of money company made - Add up all the money coming in minus the expenses )

Question 38

an asset that is easily converted to cash

Answer 38

liquid asset

Question 39

What is a periodic expense?

Answer 39

* an expense that occurs once in awhile (periodically) * need to set money aside so you have it when the bill is due

Question 40

What is cash inflow?

Answer 40

* money you have available to spend as a result of working or from other income * other income includes interest, investment, child support, alimony, social security

Question 41

What is an expenditure?

Answer 41

* an amount of money spent, as a whole or on a particular thing * goal is to make sure money coming in = money going out

Question 42

What is a fixed expense?

Answer 42

costs that occur on a regular basis

Question 43

What is a variable expense?

Answer 43

* an expense that changes (varies) with each month * may not be easy to estimate

Question 44

What is an asset?

Answer 44

* something you own of value * 'one man's trash is another man's treasure'

Question 45

all income a business receives over a period of time

Answer 45

revenue

Question 46

What is management accounting?

Answer 46

* reports info to managers of a company to assist them in decision making * is for internal use (inside use) * ex. give an income report (shows all money brought into company) to the owner

Question 47

What are some examples of fixed expenses?

Answer 47

* rent * mortgage * insurance premiums * salary employees * tax payments * cable * newspaper subscription * magazine subscription * loan payment

Question 48

What is fiscal year?

Answer 48

* aka financial year or budget year * period used for calculating annual (yearly) financial statements in business or other organizations * does not always begin in january and end in december * runs over any 12 month period * can be october thru september, august thru july, etc